TY2020 CA 5805 Underpayment Calculation with Annualized Method doesn't use proper extension date due to COVID

Forum|Forum|5 years ago
January 11, 2021
1 reply
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Form 5805 for California calculating an underpayment penalty using the annualized method is not properly taking into account the extended 540ES deadline to July 15. I made a large 540-ES payment on July 15 to account for capital gains in May, but the 5805 worksheets are flagging me as underpaid for the quarter ending June 15 and assessing a penalty.

I'm hoping this is just a bug in the early version of the form.

https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/extensions-to-file-pay.html

https://ttlc.intuit.com/community/tax-topics/help/is-the-tax-deadline-delayed-what-to-[product key removed]avirus-covid-19-and-your-taxes/00/1330374

taxnightowlAuthor

Level 5

For now, TurboTax support is writing this off as the Forms not being final yet. This form will be final on Feb 11, 2021, so we'll see if the problem gets fixed.

AmyC

Level 15

Yes, once the form is finalized, the software can be updated- usually within a day. The IRS has delayed and does not begin accepting returns until February 12 so we all have a long way to go.

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gtchen66

Level 2

Interesting -- I actually had to delete "5805 Wks II" to get things to look right. While the worksheet still lists the payment due dates as 4/15/2020 and 6/15/2020 for (a) and (b) respectively (when they should both be 7/15/2020 as can be seen on the actual worksheet on the FTB site), the penalty is now correctly eliminated.

Very annoying though that the automatic software and form updates didn't fix this, Manual intervention should have been unnecessary.

Thanks for your feedback.

I am still confused as to how to fill this out. Instructions say to fill out the amount withheld for the first quarter (7/15/20), second quarter (7/15/20), third quarter (9/15/20) and fourth quarter (1/15/21). Am I supposed to enter the amount withheld between 1/1/20 and 7/15/20 twice?